Starting to look at houses...carpet questions

wsuffa said:
SOL. But at 23, the furnace is due for replacement outright. In fact, if I were you, I'd ask for a credit from the seller for the exchanger and take that money together with some of your own to buy a very high efficiency furnace. It will pay off. Don't let the seller do it because they'll get the cheapest thing possible, and don't make 'em replace the HE (because you'll still have a 23 year old furnace).
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Understand. The furnace needs to go. Unfortunately I am getting a FHA loan which prohibits me from asking the seller for a credit. I could negotiate it off the total purchase price but that really doesn't do anything for me.

My only real option is to get the seller to do it before I take ownership and possibly pay them to put a good one in.
 
jesse said:
Understand. The furnace needs to go. Unfortunately I am getting a FHA loan which prohibits me from asking the seller for a credit. I could negotiate it off the total purchase price but that really doesn't do anything for me.

My only real option is to get the seller to do it before I take ownership and possibly pay them to put a good one in.
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If they'll work with you, the last sentence is a good option. Make sure you specify make/model & get the warranty benefit to you.
 
The seller should pay for the furnace or take the purchase price off the price of the house, which is the better alternative. Deal with any AC issues at the same time. If the seller balks be prepared to rent. This is a big issue that could cost you a lot of money.
 
steingar said:
The seller should pay for the furnace or take the purchase price off the price of the house, which is the better alternative. Deal with any AC issues at the same time. If the seller balks be prepared to rent. This is a big issue that could cost you a lot of money.
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The seller's going to have to fix it or reduce the price anyway assuming the information below is true

RogerT said:
Nebraska law requires all known defects to be divulged to a buyer. The law
allows a penalty from the seller to the buyer if it's not done. I had
a case where the seller on mine failed to state something and he ended
up paying for fixing it.
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May as well take care of it now while there is a buyer.
 
jesse said:
Wells Fargo just backed out of the deal completely. So at this point I basically need to make an offer on a house within a day or two or just say forget about it and find something to rent.
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Just coming in on this late - you're renting now, but lease is expiring? Can you go month to month?

NEVER rush into a house purchase.

Sorry about the bad news. :(
 
Wow, ok I thought I was on the last page. Apparently I wasn't.

Coming in new on this - Jesse it sounds like you're rushing into a purchase to take advantage of a 1 time 8k tax credit.

The tax credit is nice, sure, but the wrong house? Will cost you way more than 8k.

Stop now. Forget the tax credit. Get a different lender (Try MetLife Home Loans or Churchill Mortgage). Then go house hunting for something you love at your own pace.

Winter's coming. Housing is down anyway - it goes down more in winter - meaning better deals. You'll save more than 8k long term if you get a better deal up front.
 
Greebo said:
Wow, ok I thought I was on the last page. Apparently I wasn't.

Coming in new on this - Jesse it sounds like you're rushing into a purchase to take advantage of a 1 time 8k tax credit.

The tax credit is nice, sure, but the wrong house? Will cost you way more than 8k.

Stop now. Forget the tax credit. Get a different lender (Try MetLife Home Loans or Churchill Mortgage). Then go house hunting for something you love at your own pace.

Winter's coming. Housing is down anyway - it goes down more in winter - meaning better deals. You'll save more than 8k long term if you get a better deal up front.
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I don't really care about the $8,000 tax credit. It'll cost me $8000 to buy a house. It's not that.

99% of my stuff is in storage right now -- I am actually living in a ****-hole apartment that the realtor owns (for free). I'm either going to buy a house soon or I'm going to find a nice place to rent again and forget about it for a few years.

I haven't been rushing into anything. I just got screwed. Now I'm either going to buy something or I'm not going to buy something.
 
What's your hard deadline on the apartment you're in now?
 
Also are you going FHA because you only have around 5% to put down?
 
Greebo said:
What's your hard deadline on the apartment you're in now?
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I don't know. It's a ****-hole that makes for a terrible life. Basically -- if this house doesn't go through. I'll rent an apartment and forget about houses for at least a year.
 
I have very little interest in buying a home $0 down. For the most part I like the FHA program. Considering where I'm at in the process right now -- doing anything fancy mortgage wise would be suicide. I am set to close in 20 days.
 
jesse said:
I have very little interest in buying a home $0 down. For the most part I like the FHA program. Considering where I'm at in the process right now -- doing anything fancy mortgage wise would be suicide. I am set to close in 20 days.
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Does FHA still ding you the 3% or so of the loan amount for mortgage insurance?


Trapper John
 
jesse said:
1.75% I think. Something like that. Plus you're still paying PMI.
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FHA or conventional, they're going to get their cut for insurance...but maybe you could pay the 1.75% up front and not have them roll it into your loan, so you don't pay a bunch of interest on the insurance over time.


Trapper John
 
If I know Jesse, he'll pay in advance of the amortization schedule, and have sufficient equity to secure waiver of the PMI requirement within a couple of years.
 
jesse said:
The furnace is 23 years old. It is a Janitrol GUI075-3.
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Check with the local gas utility and the state and such, there are often rebates if you install new high efficiency units, and even if not, it's worth your $$$ in savings to just put in a new high efficiency unit. Maybe you can split the costs and add your share to the mortgage..
 
I came to terms with the seller today on the items that need to be repaired (he is fixing all of them). Things are looking good right now for a November 13th close...
 
jesse said:
I came to terms with the seller today on the items that need to be repaired (he is fixing all of them). Things are looking good right now for a November 13th close...
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What are you gonna do with the $8K tax credit? Inquiring minds what to know! Although it is none of my business. :rolleyes:

Put 1/2 down on the mortgage and save the other 1/2?
 
jesse said:
I have very little interest in buying a home $0 down. For the most part I like the FHA program. Considering where I'm at in the process right now -- doing anything fancy mortgage wise would be suicide. I am set to close in 20 days.
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My main beef with FHA is the amount of work they will require to done on the house. It can put quite an onus on the transaction - buyer and seller - but I see you're getting this worked through, so congrats, and enjoy your new home!
 
Geico266 said:
What are you gonna do with the $8K tax credit? Inquiring minds what to know! Although it is none of my business. :rolleyes:

Put 1/2 down on the mortgage and save the other 1/2?
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Bank all of it. Why? Because they want you to spend it -- and I think the credit is stupid -- so I won't be spending it. But I'll take it :)
 
Greebo said:
My main beef with FHA is the amount of work they will require to done on the house. It can put quite an onus on the transaction - buyer and seller - but I see you're getting this worked through, so congrats, and enjoy your new home!
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From what I understand -- it's not as bad as it used to be. The first house they didn't ask for any repairs.

Although I received an e-mail from my mortgage guy this morning saying that the appraisal came back and he'd call me to talk about it..Which sounds like there is a problem. Sigh.
 
jesse said:
From what I understand -- it's not as bad as it used to be. The first house they didn't ask for any repairs.

Although I received an e-mail from my mortgage guy this morning saying that the appraisal came back and he'd call me to talk about it..Which sounds like there is a problem. Sigh.
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Appraisals have been a real problem, especially with the new rules (intended to cut fraud). Basically, they're using the cheapest appraisal company, which often means that they're from out-of-market with little or no experience in a given city. And the appraisers are being super cautious, which means ultra-low appraisals. The number of challenges is WAY up, but the banks will frequently not work with you on clearing it up 'cause they're afraid, too.

It's been a real scandal in some places.
 
Well -- the appraisal came back with repairs that the seller has already agreed to fix. I guess there is some rule that says that the seller must own the house for 90 days for me to buy it with a FHA loan...which means that we have to wait a week and then do another purchase agreement. I'm sure that'll end up screwing over my closing date although the bank and Realtor assure me it will not.
 
jesse said:
Well -- the appraisal came back with repairs that the seller has already agreed to fix. I guess there is some rule that says that the seller must own the house for 90 days for me to buy it with a FHA loan...which means that we have to wait a week and then do another purchase agreement. I'm sure that'll end up screwing over my closing date although the bank and Realtor assure me it will not.
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WHAAAAAAT?

Jesus, I feel for you. Stuck in bureaucracy hell. I saw your earlier post and thought "GREAT", now this.

Good luck, brother. I hope it all pans out.:fcross:
 
jesse said:
Well -- the appraisal came back with repairs that the seller has already agreed to fix. I guess there is some rule that says that the seller must own the house for 90 days for me to buy it with a FHA loan...which means that we have to wait a week and then do another purchase agreement. I'm sure that'll end up screwing over my closing date although the bank and Realtor assure me it will not.
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There were several rules congress added August 1st, 2009 that are new to all of us in real estate. These are a result of the past morgage mess and a feeble shot at trying to clean it up. Hang in there while your loan officer and real estate agents wade though the new rules. They will be able to make the 11/30 dead line. Start packing!
 
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Geico266 said:
There were several rules congress added August 1st, 2009 that are new to all of us in real estate. These are a result of the past morgage mess and a feeble shot at trying to clean it up. Hang in there while your loan officer and real estate agents wade though the new rules. They will be able to make the 11/30 dead line. Start packing!
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He's bee pretty much packed since the closing date of the first house...and rather annoyed about it.
 
Closing is supposed to be tomorrow -- but -- the bank can't tell me yet if it'll actually happen. They're going to call me at 8:15am to tell me the status of my 9am closing. Very frustrating.
 
jesse said:
Closing is supposed to be tomorrow -- but -- the bank can't tell me yet if it'll actually happen. They're going to call me at 8:15am to tell me the status of my 9am closing. Very frustrating.
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But I'll bet they already wanted all sorts of commitments from you and probably in writing with your signature on the bottom. Too bad you didn't bring a few of your own for them to sign when you agreed to take out a mortgage.
 
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